Household budgets strained as onion prices skyrocket in India

Household budgets strained as onion prices skyrocket in India

The sky-rocketing onion prices across India has left the common man in dire straits. This common vegetable which most Indian households cannot do without now costs Rs 100 to Rs 120 per kg. Shallots, a staple ingredient in Kerala homes cost even higher—Rs 150 per kg. The garlic prices are also nearing Rs 300 per kg.

Thefts of onion consignment have been reported in Madhya Pradesh and Gujarat amidst the soaring prices.

A truck carrying 40 tons of onions worth Rs 20 to 22 lakh, on the way from Nashik in Maharashtra to Gorakhpur in Uttar Pradesh, was found in Shivpuri district in Madhya Pradesh on Thursday.

In yet another instance, thieves stole 250 kg of the bulb, worth Rs 25,000 in the early hours of Thursday from near a vegetable shop in Gujarat's Surat city.

The unfortunate news however, is that this unprecedented 150 per cent hike in price of onions from Rs 45 in October shows no signs of slowing down.

Besides households, inflation of onion prices have prompted restaurant owners to cut down on the usaage of onion drastically.

"Many customers demand raw onion slices with the main dish. But we have put up a board at our hotel to inform the customers that a plate of raw onion would cost Rs 15 extra. We have taken this decision as we cannot afford to serve it free of cost," Prakash Shetty, who runs Bharat Lunch Home in Sion- Koliwada area in Mumbai said.

Meanwhile, demands to distribute onion through fair price shops is gaining momentum. Accusations are at large that the inflation is an artificial one created by hoarders and middlemen.

Govt extends stockholding limit

The central government had on Wednesday extended prohibitions on traders from the stocking of edible bulb across the country for an indefinite period.

Besides stock holding limit, the Centre has banned exports of onion and importing 1.2 lakh tonnes to control prices, Food and Consumer Affairs Minister Ram Vilas Paswan said.

The stock holding limit was imposed in September. At present, retailers can stock onion only up to 100 quintals and wholesale traders are allowed to keep up to 500 quintals.

The chief secretaries of all states have been aasked to suitably reduce the stock limits further in their states as per the availability and prices.

On November 19, Paswan had said onion production in Kharif and late-Kharif seasons of 2019-20 is estimated to fall 26 per cent to 5.2 million tonnes due to a delayed monsoon and then excessive rains in key growing areas.

Egyptian imports to reach in December second week

The buffer stock of 57,000 tonnes of onions has been liquidated and therefore the Centre decided to import.

State-owned MMTC informed that the first shipment of onions from Egypt would arrive in the second week of December. The public sector trading firm has contracted imports of 6,090 tonnes of onions. It has floated a country-specific tender.

Meanwhile, MMTC has been asked to work out modalities of transportation of sealed container of onions from Mumbai port directly to FHEL facility at Rai, Sonipat in Haryana.

Agriculture Ministry in consultation with National Horticulture Board will provide an assessment about shelf-life in cold storage facility of imported onions from Egypt. MMTC has informed that onions from Turkey/Holland can be stored for relatively longer periods as compared to those from Egypt given the respective climatic conditions.

States express concern

The Goa Congress on Friday asked the BJP-led state government to provide subsidised onions to the people as prices have sky-rocketed, with the kitchen staple selling at over Rs 100 per kilogram.

Data released by the Union Comsumer Affairs ministry on Thursday had revealed that maximum price of onions, at Rs 110 per kilogram, was recorded in Panaji in Goa.

Opposition Congress MLAs of Assam reached the Assembly wearing garlands of onions on Friday as a mark of protest against the skyrocketing price of the bulb.

Assam Food Supply Minister Phani Bhusan Chowdhury told journalists that the rise in the price of onion is being felt across the country and Assam being a consuming state was feeling the brunt of it.

Wearing garlands of onions, Delhi BJP leaders led by party's Rajya Sabha MP Vijay Goel staged a protest at the Ajmeri Gate on Friday against the Kejriwal government as prices of the kitchen staple skyrocketed.

Chief Minister Arvind Kejriwal and his Food minister Imran Hussain have accused the BJP-ruled Centre of not supplying onion to the Delhi government at concessional rates. Onion is selling up to Rs 100 per kg in various markets in the city.

Congress attacks Centre

The Congress on Friday attacked the Centre over spiralling onion prices, accusing it of not taking appropriate measures to tackle the crisis.

In a press conference here, the party's Rajya Sabha member Amee Yajnik said the government has "failed utterly" in handling the matter.

"The government has failed utterly in this issue. What is the problem with the government? It seems that they know the problem about the hoarders and where these onions are stored but they are not ready to hit at the particular point...," Yajnik said.

Blaming the BJP government for making people cry over the soaring onion prices, Congress spokesperson Supriya Shrinate said, "Onion prices have really rocked the country. It has played with the budget of families and it is necessary to talk about it.

"Onions are still being imported at Rs 27 per kilogram only and is being sold at Rs 120-130. This shows that the hoarders and middlemen have the protection from the government for which public has to pay a huge cost."

(With inputs from PTI.)

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